National Income
Accounting
ECONOMICS CHAPTER 13
PROJECT
Antenucci / Smith
11/11/2011
Economics Chapter 13 Project
Economics is the study of how people make choices about the use of limited resources. There are two branches of study within
economics – microeconomics and macroeconomics. We have completed our study of microeconomics and are now moving to the
study of macroeconomics which deals with decision making by large units such as governments. In completing this project you will
describe the way our government measure’s the economy’s performance, understand the role of inflation on prices and GDP,
compare and contrast aggregate supply and demand, analyze business fluctuations, and evaluate the causes of business
fluctuations. To complete this project you will use your book and the internet. The text (Glencoe- Economics) will provide you with
the terminology and the answer’s to question’s in the project. The internet will provide you with the answers to the web quest
component of the project. GOOD LUCK!

Define: national income accounting, gross domestic product, net exports, depreciation, disposable personal income (Resource – Textbook
Glencoe)

Online find the top five countries in overall GDP – list those countries, and then choose 5 countries on your own and answer the following
for each: GDP, GDP Per Capita, population below poverty level, inflation rate, labor force, annual budget, industries, and complete a
currency exchange for all countries against the US Dollar ($1.00) (Resource – The World Bank – www.worldbank.org, CIA World
Factbook – www.cia.gov, Country Reports – www.countryreports.org,)
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
Define: inflation, purchasing power, deflation, consumer price index (CPI), market basket, base year, producer price index (PPI), GDP
price deflator, real GDP (Resource – Textbook Glencoe)

Answer: What are the most commonly used price indices? What is the difference between inflation and deflation? How would you
determine real GDP if you know only GDP? (Resource – Textbook Glencoe)

Online find the CPI inflation calculator and adjust the following amounts for inflation, use 1955 as the comparison year to 2011. (Price for
a winter sweater $45.00, price of a weekly grocery bill $100, purchase price of a flat screen TV $2,000, and finally a new car at $28,000)
Then choose two separate years on your own and four new dollar amounts for each year. (Resource – US of labor – the Bureau of Labor
and Statistics – www.bls.gov)

Define: aggregates, aggregate demand, aggregate demand curve, aggregate supply (Resource – Textbook Glencoe)

Define: business cycle, peak, contraction, recession, depression, expansion, innovations (Resource – Textbook Glencoe)

Read the article on The Great Depression and complete the question sheet that accompanies it. Then, find an article on the net about the
most recent recession (2007-2009) and create ten essential questions about your article. Please print and attach a copy of your article to
your ten essential questions and answers.

Write a three paragraph essay explaining how Milton Friedman and John Maynard Keynes would have responded to the recession of 2007.
In the first paragraph provide autobiographical information about Friedman and Keynes and tell why they are influential to present day
economic thought. Finally, use one paragraph for each of their views on the economy and discuss how they would have addressed the
2007 recession.

Define: economic indicators, leading indicators, coincident indicators, lagging indicators (Resource – Textbook Glencoe)

Use the Department of Labor web site and find the following information: CPI, unemployment rate, average hourly earnings, PPI,
unemployment initial claims
(Resource – US of labor – the Bureau of Labor and Statistics – www.bls.gov)